Can I Refinance my home before the ARM adjusts?

John, Thank you for your question. Refinancing your home prior to such a dramatic interest rate change would be preferable, provided their is no pre-payment penalty on your loan. In more cases than not, you will not have a pre-payment penalty. Regarding the credit score and equity requirements, this will vary depending on your loan amount and property type. 20% equity would be the most desirable as you will avoid mortgage insurance, and most of our programs do not have a credit score requirement at this level. We have short and long term fixed rate loans available, all with Interest Only payment options. I would be more than happy to spend 10 mins with you on the phone reviewing your profile and discussing the options we available to determine if we can meet your goals. I can be best reached at 949-478-FUND(3863) or JAS@ThinkJohnAJr.com - John Soricelli.

Yes you can. Your credit score will need to be 620 or higher to refinance. The equity you need depends on the loan program. To avoid paying mortgage insurance you will need to have 20% or more of equity in your home. You will be able to wrap the costs into your new mortgage as long as there is the equity there to do so. If equity is a problem but you have paid on time you can use the Fannie Mae or Freddie Mac refinance options to refinance. These allow you to refinance with a lower percentage of equity and keep you from having to pay mortgage insurance if you currently do not have to or did not have to when the loan was first originated. This program prefers that you refinance into a fixed 30 year loan. The rates are very competitive to the regular refinance programs out there.Just a note. You have the option of refinancing your ARM loan into a new ARM. The rates are very low and depending on how long you plan on living in the home it may be a consideration. All the same rules apply that are mentioned above.Jennifer UrangaCNN Mortgage480-751-3723 Office623-202-4449 Directjuranga@cnnmortgage.com

Hello John,You can always refinance, however you need to make sure your loan is not subject to Pre-Payment penalty. as for the interest rate, the higher the fico and lower your Loan to Value the better interest rate you get but minimum requirements is 620 fico and can go up to 90% LTV. feel free to contact Houtan.Hormozian@Crestico.com or 949 242 5215 for more information.

John, I really doubt that your ARM will adjust higher. ... Most ARMS are adjusting lower. ... The exception would be if this is the last adjustment and it will now be amortized over a shorter term.Please contact me if you would like full details..... Happy funding, Rudi

You are exactly where millions of American's are on their home loans. The biggest question is - How much equity do I have? If you can pay off your current loan and still have 20% more value (equity) left, you stand a chance. Even if you had to pay mortgage insurance your payments on a 4.25% loan would still be better than the much higher interest rate you will be facing. The next questions should focus on YOUR credit worthiness (including income). If your new payment (including principle,taxes, insurance and interest) plus all of your credit debt is above 45% of your gross income, a conventional loan will need an exception to go through. You can coincide your close of the loan with the expiration of your prepayment penalty (if any), so that you will not have to pay the fee and will not have to jump to the higher interest rate. Regardless - You should begin the process early so the close date can be better coordinated. Thank You - If you have the credit score, the income and the equity you should be able to do it!!